Pet insurance that pays vets directly: How does it work and the best providers

While many of our top pet insurance companies have made reimbursements easy and quick, having your insurer pay your vet directly could be a boon if you face a sudden, large bill or if you're short on cash.

Pet insurance typically works on a reimbursement basis: When your animal faces an injury or illness, you take them to the vet, pay out of pocket, get a receipt and submit it to your insurer. Once the claim is processed, the eligible amount is sent to you.

However, paying the vet directly can have challenges. For example, you'll need your vet to agree to the insurance company's payment terms or work with a vet who will accept payment from your insurance company. Additionally, some insurers place limits on direct payments, only offering this option in expensive emergency situations.

If you're considering a pet insurance plan with direct vet payment, here's what you need to know.

With direct pay, funds from your insurance company will be sent straight to your vet. However, you must make sure your vet accepts this form of payment. If you're on the hunt for an insurer that offers direct pay, ask your vet's office whether they accept these payments from specific insurance companies. An alternative is switching to a vet that takes direct pay.

When your pet needs care, contact your insurer — most require some notice or paperwork to start the process. Some insurers, like Pets Best, require a release form completed by your vet for direct payment. Others, like Healthy Paws, require you to contact them to request direct payment before the treatment begins. If you use Trupanion, make sure your vet is a partner before any medical care starts. Reading your policy can help you understand exactly what steps you need to take to start the process.

You'll also still likely need to pay the vet for some part of the treatment out of pocket. As with any pet insurance policy, you'll still pay any deductible that needs to be met each policy year, along with between 10% and 30% of the bill according to your reimbursement rate. If your plan has an annual benefit limit, you'll also need to cover any amount above that limit.

Lastly, be aware that your pet insurance company paying the vet doesn't always mean your claim is approved — many companies that offer this option state that you could be on the hook for the full amount if they deny the claim. Make sure to keep an eye on the status of your claim after it's filed.

Having your pet insurance policy pay your vet directly can be beneficial, but it might also be complex. Here's what you should know before you buy a policy:

Several companies stand out for their ability to pay the vet directly — including some brands that we've previously named as our top picks for pet insurance overall.

Best for easy vet checkout: Trupanion

Who's this for? Trupanion can pay the vet directly for any situation as you check out, as long as the clinic is one of the insurance brand's 2,300 partners across the U.S. You can check if your current vet is one of them — or find a new care team for your pet — on Trupanion's website.

Standout benefits: All of Trupanion's plans are unlimited, so there aren't any per-incident, annual or lifetime caps on coverage.

Best for emergencies: Healthy Paws

Who's this for? Available in urgent situations when you're unable to pay the vet, Healthy Paws will directly pay the vet for approved claims. To use this feature, you'll need to call to request direct payment before your pet's treatment.

Standout benefits: If you need to go the reimbursement route, most claims are processed in two days.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every pet insurance article is based on rigorous reporting by expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To determine the best pet insurance, CNBC Select analyzed top pet insurance policies, focusing on five that offered direct payments to veterinarians. We prioritized those that offered the widest availability for this program. Additionally, we considered the cost, types of coverage offered, annual coverage limits, reimbursement and deductible options, waiting periods, rates, availability, and discounts of the policy itself.

Sample premium data were based on rates for both dogs and cats. The dog was: 

• Mixed breed
• 55 pounds
• Male 
• One year old
• Living in the 80123 zip code

The cat was: 

• Domestic shorthair 
• 8 pounds
• Male
• One year old
• Living in the 80123 zip code

We collected data for these sample policies with the following qualities (or as close to them as possible): 

• $500 deductible 
• 90% reimbursement rate 
• $15,000 annual limit 

We sorted our picks into the following categories:

• Best for easy vet checkout: Trupanion
• Best for emergencies: Healthy Paws

Premiums and policy structures listed for pet insurance companies may change in accordance with company policy.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

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